RSSIBM Offloads Third of Lenovo Shares
By the Betanews Staff | Published May 8, 2007, 12:09 PM
IBM on Tuesday continued offloading its stake in Chinese manufacturer Lenovo, which bought the company's PC business and ThinkPad brand name in 2005, becoming the #3 computer maker in the world. IBM is selling 223 million shares, nearly one-third of its 7.4 percent stake in Lenovo.
The move follows the sale of 300 million Lenovo shares by IBM in February. As part of the initial $1.75 billion deal, IBM was allowed to shed a third of its stake each year, but under an agreement reached last year, it can now completely separate from Lenovo in November 2007.
yup, they need to focus on the Enterprise level anyway.
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last time i checked, um today. enterprises use laptops and desktops. not sure what one would call an enterprise system if the thinkpads and thinkcentres don't meet the functionality. these systems have been ibm's foot in the door to many of their customers. much better than the random cold call or scanning your business card at a seminar.
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Enterprise servers and infrastructure (storage/backup) is their focus. The margins are much higher than that of the cut-throat business of selling desktops or laptops.
IBM picks up many of their customers with outsourcing deals -- that involves putting IBM enterprise gear in there.
The deal with Lenovo always included the option to sell their shares.... as such they are exercising it.
They have told the market in 2005 that they were exiting this market... they are now following through with the statement.
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